Moderating inflation levels and rising expectations of the Fed cutting interest rates three times in 2024 paint a favorable picture for the tourism industry.
Additionally, projections for an increase in international travel and an uptick in global passenger traffic surpassing the pre-pandemic levels propel the prospects of the industry.
Falling Interest Rates to Boost Consumer Spending
According to the CME FedWatch Tool, the interest rate may fall to 5-5.25% in June, supported by a likelihood of 65.8%. Further, the rates are estimated to fall to 4.25-4.5%, boosted by a probability of 30.3%. A fall in the interest rate may lead to increased discretionary spending by consumers, thereby bolstering the tourism industry.
Global Air Traffic Set to Surpass Pre-Pandemic Peaks
According to the World Airport Traffic Forecasts’ 2023-2052 report, as quoted on the Business Traveller, global air passenger traffic is anticipated to achieve a milestone by the end of 2024, reaching 9.7 billion and…
tourism-wave-000000614.html” target=”_blank”>Read further.